The National Agricultural Development Fund (NADF) has signed a tripartite memorandum of understanding (MoU) to scale agricultural insurance and climate-smart finance for smallholder farmers across Nigeria.
The agreement—signed with Leadway Assurance Company Limited and Verdure Climate—was endorsed on Friday during the national dialogue on innovative agriculture insurance and climate finance in Abuja. It will support the implementation of an AGRA-backed project designed to strengthen farmers’ resilience through new insurance models and financing tools.
AGRA is a pan-African nonprofit focused on supporting smallholder farmers and driving agricultural transformation across the continent.
Speaking at the event, NADF Executive Secretary Mohammed Ibrahim—represented by Nasir Ingawa, General Manager, Partnerships and Investor Relations—said the partnership aligns with the fund’s mandate to expand agricultural lending nationwide.
“As we face increasing challenges due to climate change, unpredictable weather patterns, and limited access to finance, the role of innovative financial solutions such as index-based agricultural insurance and blended finance has never been more critical,” Ingawa said.
He added that the rollout of index-based and pay-at-harvest insurance products would significantly boost investor confidence in the agricultural value chain.
The collaboration will focus on bundling insurance with agricultural loans, expanding credit-linked insurance for rice, soybean, and maize value chains in priority states, and incorporating climate-smart practices into NADF loan products. It will also introduce digital climate advisory services and build the capacity of business development service providers.
Friday’s dialogue brought together financial institutions, government agencies, insurers, farmer groups, and anchor companies to explore ways to integrate index insurance into agricultural lending and unlock more private-sector capital for rural producers.
The project forms part of AGRA 3.0, which aims to improve market linkages, expand access to finance, and strengthen the resilience of thousands of farmers between 2025 and 2027.
Earlier on Tuesday, NADF launched a blended on-lending financing partnership with Psaltry International Company Limited to empower 12,000 young women in cassava cultivation in its first phase, with a target of 45,000 women by the end of the programme.
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